PUBLIC STORAGE, INC.
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended
March 31, For the Year Ended December 31,
------------------------------ ------------------------------
2005 2004 2004 2003
--------------- -------------- -------------- --------------
(amounts in thousands, except ratios)
Net income........................................... $ 96,411 $ 69,067 $ 366,213 $ 336,653
Add: Minority interest in income............... 10,644 20,620 49,913 43,703
Less: Minority interests in income which do not
have fixed charges........................... (4,305) (3,913) (17,099) (13,610)
Less: Equity in earnings of investments...... (5,678) (4,057) (22,564) (24,966)
Add: Cash distributions from investments.... 4,537 5,014 20,961 17,754
Less: Impact of Discontinued Operations..... (1,015) 151 1,229 (3,522)
--------------- -------------- -------------- --------------
Adjusted net income.................................. 100,594 86,882 398,653 356,012
Interest expense................................ 1,663 100 760 1,121
--------------- -------------- -------------- --------------
Total earnings available to cover fixed charges...... $ 102,257 $ 86,982 $ 399,413 $ 357,133
=============== ============== ============== ===============
Total fixed charges - interest expense (including
capitalized interest)............................. $ 2,328 $ 1,225 $ 4,377 $ 7,131
=============== ============== ============== ===============
Cumulative Preferred Stock dividends................. $ 40,413 $ 38,042 $ 157,925 $ 146,196
Preferred partnership unit distributions............. 5,375 14,554 30,423 26,906
--------------- -------------- -------------- --------------
Total preferred distributions, prior to EITF Topic D-42 45,788 52,596 188,348 173,102
Allocations pursuant to EITF Topic D-42 2,778 5,786 10,787 7,120
--------------- -------------- -------------- --------------
Total preferred distributions, including EITF Topic D-42 $ 48,566 $ 58,382 $ 199,135 $ 180,222
=============== ============== ============== ===============
Total combined fixed charges and preferred
distributions, prior to EITF Topic D-42.............. $ 48,116 $ 53,821 $ 192,725 $ 180,233
=============== ============== ============== ===============
Total combined fixed charges and preferred
distributions, including EITF Topic D-42............. $ 50,894 $ 59,607 $ 203,512 $ 187,353
=============== ============== ============== ===============
Ratio of earnings to fixed charges.................. 43.92x 71.01x 91.29x 50.08x
=============== ============== ============== ===============
Ratio of earnings to combined fixed charges and
preferred distributions, prior to EITF Topic D-42. 2.13x 1.62x 2.07x 1.98x
=============== ============== ============== ===============
Ratio of earnings to combined fixed charges and
preferred distributions, including EITF Topic D-42 2.01x 1.46x 1.96x 1.91x
=============== ============== ============== ===============
For the Year Ended December 31,
-------------------------------------------
2002 2001 2000
--------------- ------------- -----------
(amounts in thousands, except ratios)
Net income........................................... $ 318,738 $ 324,208 $ 297,088
Add: Minority interest in income............... 44,087 46,015 38,356
Less: Minority interests in income which do not
have fixed charges........................... (14,307) (11,243) (10,549)
Less: Equity in earnings of investments...... (29,888) (38,542) (39,319)
Add: Cash distributions from investments.... 19,496 24,124 16,984
Less: Impact of Discontinued Operations..... 11,476 1,297 1,131
--------------- ------------- -----------
Adjusted net income.................................. 349,602 345,859 303,691
Interest expense................................ 3,809 3,227 3,293
--------------- ------------- -----------
Total earnings available to cover fixed charges...... $ 353,411 $ 349,086 $ 306,984
=============== ============= ===========
Total fixed charges - interest expense (including
capitalized interest)............................. $ 10,322 $ 12,219 $ 13,071
=============== ============= ===========
Cumulative Preferred Stock dividends................. $ 148,926 $ 117,979 $ 100,138
Preferred partnership unit distributions............. 26,906 31,737 24,859
--------------- ------------- -----------
Total preferred distributions, prior to EITF Topic D-42 175,832 149,716 124,997
Allocations pursuant to EITF Topic D-42 6,888 14,835 -
--------------- ------------- -----------
Total preferred distributions, including EITF Topic D-42 $ 182,720 $ 164,551 $ 124,997
=============== ============= ===========
Total combined fixed charges and preferred
distributions, prior to EITF Topic D-42.............. $ 186,154 $ 161,935 $ 138,068
=============== ============= ===========
Total combined fixed charges and preferred
distributions, including EITF Topic D-42............. $ 193,042 $ 176,770 $ 138,068
=============== ============= ===========
Ratio of earnings to fixed charges.................. 34.24x 28.57x 23.49x
=============== ============= ===========
Ratio of earnings to combined fixed charges and
preferred distributions, prior to EITF Topic D-42. 1.90x 2.16x 2.22x
=============== ============= ===========
Ratio of earnings to combined fixed charges and
preferred distributions, including EITF Topic D-42 1.83x 1.97x 2.22x
=============== ============= ===========
Exhibit 12
PUBLIC STORAGE, INC.
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Supplemental Disclosure of Ratio Earnings Before Interest, Taxes, Depreciation
and Amortization ("EBITDA") to Fixed Charges (a):
Three Months Ended
March 31, For the Year Ended December 31,
------------------------ ------------- ---------------
2005 2004 2004 2003
----------- ------------ ------------- ---------------
(amounts in thousands, except ratios)
Net income........................................................... $ 96,411 $ 69,067 $ 366,213 $ 336,653
Less: (Gain)/Loss on sale of real estate, impairment of real
estate assets and real estate investments including
discontinued operations...................................... - - (2,288) (5,378)
Less: Our equity share of EITF D-42 charges, impairment
(gain)/loss on sale of real estate........................... (1,265) 943 (4,544) (187)
Add: Depreciation and amortization............................. 48,005 46,848 184,345 188,003
Less: Depreciation allocable to minority interests............. (1,320) (1,575) (6,046) (6,328)
Add: Depreciation included in equity in earnings of real estate
entities..................................................... 8,685 8,275 33,720 27,753
Add: Minority interest - preferred............................. 6,249 16,617 32,486 26,906
Add: Interest expense.......................................... 1,663 100 760 1,121
----------- ------------ ------------- ---------------
EBITDA available to cover fixed charges.............................. $ 158,428 $140,275 $ 604,646 $ 568,543
=========== ============ ============= ===============
Total fixed charges - interest expense (including capitalized
interest)......................................................... $ 2,328 $ 1,225 $ 4,377 $ 7,131
=========== ============ ============= ===============
Cumulative Preferred Stock dividends................................. $ 40,413 $ 38,042 $ 157,925 $ 146,196
Preferred partnership unit distributions............................. 5,375 14,554 30,423 26,906
----------- ------------ ------------- ---------------
Total preferred distributions, prior to EITF Topic D-42.............. 45,788 52,596 188,348 173,102
Allocations pursuant to EITF Topic D-42......................... 2,778 5,786 10,787 7,120
----------- ------------ ------------- ---------------
Total preferred distributions, including EITF Topic D-42............. $ 48,566 $ 58,382 $ 199,135 $ 180,222
=========== ============ ============= ===============
Total combined fixed charges and preferred distributions, prior to
EITF Topic D-42...................................................... $ 48,116 $ 53,821 $ 192,725 $ 180,233
=========== ============ ============= ===============
Total combined fixed charges and preferred distributions, including
EITF Topic D-42...................................................... $ 50,894 $ 59,607 $ 203,512 $ 187,353
=========== ============ ============= ===============
Ratio of earnings to fixed charges.................................. 68.05x 114.51x 138.14x 79.73x
=========== ============ ============= ===============
Ratio of earnings to combined fixed charges and preferred
distributions, prior to EITF Topic D-42........................... 3.29x 2.61x 3.14x 3.15x
=========== ============ ============= ===============
Ratio of earnings to combined fixed charges and preferred
distributions, including EITF Topic D-42.......................... 3.11x 2.35x 2.97x 3.03x
=========== ============ ============= ===============
For the Year Ended December 31,
------------- ---------- ---------------
2002 2001 2000
------------- ---------- ---------------
(amounts in thousands, except ratios)
Net income........................................................... $ 318,738 $ 324,208 $ 297,088
Less: (Gain)/Loss on sale of real estate, impairment of real
estate assets and real estate investments including
discontinued operations...................................... 2,541 (4,091) (576)
Less: Our equity share of EITF D-42 charges, impairment
(gain)/loss on sale of real estate........................... (3,737) - (3,210)
Add: Depreciation and amortization............................. 181,648 168,061 148,967
Less: Depreciation allocable to minority interests............. (8,087) (7,847) (7,138)
Add: Depreciation included in equity in earnings of real estate 27,078 25,096 21,825
entities.....................................................
Add: Minority interest - preferred............................. 26,906 31,737 24,859
Add: Interest expense.......................................... 3,809 3,227 3,293
------------- ---------- ---------------
EBITDA available to cover fixed charges.............................. $ 548,896 $ 540,391 $ 485,108
============= ========== ===============
Total fixed charges - interest expense (including capitalized
interest)......................................................... $ 10,322 $ 12,219 $ 13,071
============= ========== ===============
Cumulative Preferred Stock dividends................................. $ 148,926 $ 117,979 $ 100,138
Preferred partnership unit distributions............................. 26,906 31,737 24,859
------------- ---------- ---------------
Total preferred distributions, prior to EITF Topic D-42.............. 175,832 149,716 124,997
Allocations pursuant to EITF Topic D-42......................... 6,888 14,835 -
------------- ---------- ---------------
Total preferred distributions, including EITF Topic D-42............. $ 182,720 $ 164,551 $ 124,997
============= ========== ===============
Total combined fixed charges and preferred distributions, prior to
EITF Topic D-42...................................................... $ 186,154 $ 161,935 $ 138,068
============= ========== ===============
Total combined fixed charges and preferred distributions, including
EITF Topic D-42...................................................... $ 193,042 $ 176,770 $ 138,068
============= ========== ===============
Ratio of earnings to fixed charges.................................. 53.18x 44.23x 37.11x
============= ========== ===============
Ratio of earnings to combined fixed charges and preferred
distributions, prior to EITF Topic D-42........................... 2.95x 3.34x 3.51x
============= ========== ===============
Ratio of earnings to combined fixed charges and preferred
distributions, including EITF Topic D-42.......................... 2.84x 3.06x 3.51x
============= ========== ===============
(a) EBITDA represents earnings prior to interest, taxes, depreciation,
amortization, gains on sale of real estate assets and the impact of the
application of EITF Topic D-42. This supplemental disclosure of EBITDA is
included because financial analysts and other members of the investment
community consider coverage ratios for real estate companies on a
pre-depreciation basis.
Exhibit 12